NHMFC made ripples via BERDE program

State firm National Home Mortgage Finance Corp. (NHMFC) has made waves in the global housing finance landscape with its innovative Berde program.

This initiative, designed to promote sustainable living through housing finance, was highlighted by NHMFC vice president Maria Luisa Favila at the recent 32nd International Union for Housing Finance (IUHF) World Congress.

BERDE, which stands for “Building Eligible Resilient Dwelling for Everyone,” is a liquidity facility that encourages the adoption of eco-friendly materials, water-saving technologies, and sustainable building practices. By minimizing the carbon footprint of new housing projects, BERDE paves the way for a greener real estate and construction sector.

Financial support for NHMFC Under the program, the NHMFC provides financial support to public or private housing loan originators that construct, retrofit, or finance green-certified residential buildings. Eligible projects must adhere to strict environmental standards, including energy efficiency, water conservation and climate resilience. “BERDE offers a compelling incentive for developers to adopt sustainable practices,” Favila stated. “By incorporating features like solar panels, low-flow fixtures and enhanced insulation, projects can not only reduce their environmental impact but also provide long-term cost savings for homeowners.” The program offers fixed interest rates ranging from three percent to seven percent, depending on the loan term. Additionally, NHMFC provides direct interest subsidies to eligible borrowers, making sustainable housing more accessible. “With its competitive interest rates and government support, BERDE is poised to drive a significant shift towards sustainable housing practices in the Philippines,” Favila added. The BERDE Program was officially launched in 2021 in response to growing concerns about climate change and the environmental impact of traditional housing development. Its success at the IUHF World Congress underscores its potential to serve as a model for other countries seeking to promote sustainable housing finance.